Job Numbers Powered by Part-time Workers

Job Numbers Powered by Part-time Workers

The Bureau of Labor Statistics (BLS) reported that there were 209,000 jobs created in June, which was weaker than estimates of 240,000. Job growth in April and May was also revised lower, subtracting 110,000 jobs in those months combined. The unemployment rate declined slightly from 3.7% to 3.6%, though it’s still above April’s reading of 3.4%.

What’s the bottom line? There are two reports within the Jobs Report and there is a fundamental difference between them. The Business Survey is where the headline job number comes from, and it's based predominately on modeling and estimations. The Household Survey, where the Unemployment Rate comes from, is considered more real-time because it’s derived by calling households to see if they are employed.

The Household Survey has its own job creation component, and it showed that there were 273,000 job creations in June. However, jobs are still running negative in this survey over the last two months, as May’s data showed 310,000 job losses. June’s report also showed sizeable increases in multiple job holders, people working part-time for economic reasons, and people who could only find part-time work, suggesting some underlying weakness in the job market and economy overall.